Why invest in classic motorcycles?
Classic motorcycles are a thrilling investment that will grow at a fantastic rate and deliver tax-free returns. Click here to see a letter from H M Revenue and Customs confirming the tax status of classic motorcycles, proving there is no capital gains tax or income tax on profits from your personal classic motorcycle collection, what ever its size. Look at the ROI charts on this site and see for yourself. As long as you invest in the right investment grade machine, your alternative investment will grow steadily and offer fantastic tax-free returns over time. Is it the best investment? Many clients have reported that classic motorcycles are the best investment they have ever made, with average returns of 320% since 2010 far better than any mutual fund investment. But why are certain classic motorcycle prices increasing?
1. Demographics. New motorcycle sales in the UK through the 1970s were enormous and peaked in 1980 at over 320,000 p.a. (read my article with data to prove this from the MCIA here). This was because most people growing up at this time had a motorcycle prior to buying a car. A lot of people, now in their 40s and 50s, pine after the motorcycles of their youth. There are not enough machines left for riders, let alone investors, so prices will have to increase further.
2. Cost of restoration. The cost of restoration, at present, and without taking into account labour, is approximately two to three times the cost of buying one of these classic motorcycles in excellent condition. Add to that the cost of paying someone to restore the motorcycle and it is clear that this area of the market has enormous room for prices to increase.
3. Many parts for such motorcycles are no longer produced, so the costs of useable spares are soaring.
4. As more people restore such beautiful motorcycles and parade them, more people realise how beautiful they are and want to own them. The more people that want such a limited number of these classic motorcycles, then the more prices increase.
5. As investors wake up to the tax-free investment potential, then prices will rise due to further pressure on supply.
6. China banned the import of all motorcycles since 1997 to stimulate home producers. However, this barrier to entry was lifted in January 2017 and Chinese collectors will want to invest in beautiful classic and vintage motorcycles. This will increase pressure further on supply and increase prices. Just look at what China has done to prices in the art and fine wine markets. The Chinese motorcycle market is currently running at selling 20,000,000 new motorcycles a year. Even in the 1990s new bike sales were at 10,000,000 a year, so most people in China started life on a motorcycle and this was the case in the 1970s and 80s.
Motorcycles do not just offer freedom, but classic and vintage motorcycles also offer freedom to invest tax-free, with high returns far superior to any mutual funds (See the ROI charts here). How many alternative investments can you ride and even admire when they’re standing still?
Why do wealthy people invest in classic vehicles?
Celebrities such as Chris Evans, Charles Saatchi, Nick Masonloyd), Jay Kay and Rowan Atkinson all invest in classic cars, because they know that when they invest in the right vehicle, their tax-free investment grows much faster than inflation. They are also hugely passionate about their vehicles and get a great deal of joy from driving them, riding them and owning them. They are normally pictured smiling when they’ve sold a vehicle because they know they have been investing tax-free and have just booked a fantastic profit. No mutual fund can offer the type of returns that classic cars and classic motorcycles can offer as an investment. No mutual fund can offer the fun and access to a lifestyle that classic motorcycle investment delivers. These people also understand that these vehicles are a safe investment over time. It is clearly one of the best investments in terms of tax liability, fun and highest returns.
Why use a motorcycle broker?
Because you need to understand which motorcycles are classics and are likely to increase in value and which motorcycles will not perform as the best investment. You need a classic motorcycle expert to know whether an example is genuine and has great resale potential. A classic motorcycle shop will want to sell you something from their shop floor. A motorcycle broker has no such agenda. The only agenda a motorcycle broker has is to make you, the client, the best profits. Motorcycle shops have to keep stock turning, so the little details that really add value, or really matter to the resale value of a classic motorcycle, can often be overlooked as they need pretty stock to sell. Classic motorcycle experts will know the little details that prove whether a motorcycle is genuine, or just very pretty. The Motorcycle Broker undertakes the same due diligence on a classic motorcycle that costs £10,000 as one that costs £500,000; there is no motorcycle shop that undertakes such thorough investigation of their stock. With each classic motorcycle, customers receive a due diligence file with proof that their classic motorcycle is investment grade and these are the classic motorcycles which achieve the best returns, and they are the best investment. The Motorcycle Broker also undertakes a far more thorough mechanical survey of classic motorcycles than any classic motorcycle shop. These machines are investigated thoroughly and correctly set up when offered for sale with a full warranty. The Motorcycle Broke works for the client, whereas a motorcycle shop works for the motorcycle shop.
Motorcycle collection curation
If you are interested in starting a classic motorcycle collection, for a high return investment, then a motorcycle broker will lead you to maximise your profits. A motorcycle shop will want to sell you what is on their shop floor, so they will gladly sell you a motorcycle collection based on the sock they own or that they know they can get their hands on easily. The Motorcycle Broker will find out what you really like, discuss previous and projected profits (based on actual data that only The Motorcycle Broker has) and will assist you in curating a beautiful and profitable motorcycle collection. The Motorcycle Broker can also conduct the sale of entire motorcycle collections discretely.
If you are thinking of investing in a classic motorcycle collection you can read more in this article.
Roaring great fun
These classic motorcycles are not just incredible tax-free investments, but they are roaring great fun. Solo and two-up riding is fantastic- you are the journey, rather than being catapulted through the journey in a bubble. Riding a motorcycle brings the senses alive like nothing else. Every sense is heightened and you are one with your machine, one with your journey and one with your investment. Which mutual funds can offer such a return on their investments?
Once you ride a motorcycle you have accessed a whole new lifestyle. Just check out The Ace Café in London and you will see they have different nights for motorcyclists of all varieties. The internet is crammed with different motorcycle clubs to cater for every taste. Everyone you meet, who also rides a motorcycle, will welcome you to a great, friendly new world. Or just ride your investment alone and enjoy the journey and enjoy the best investment returns.
Important legal notice
I am not registered with any financial authority and am not qualified, or allowed, to give financial advice. The views on this website are only my personal opinions and are in no way offered as financial advice. You must make your own decisions regarding any investments.